Allowance for Doubtful Accounts Has a Debit Balance of $980

question 26

Multiple Choice

Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment) . An analysis of the accounts in the customers' ledger indicates uncollectible accounts of $16,000. The adjusting entry would require a credit to:

• A)bad-debt expense for $16,980.
• B)allowance for doubtful accounts for $16,980.
• C)allowance for doubtful accounts for $15,020.
• D)accounts receivable accounts for $15,020.

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Definitions:

Routine Activity

A concept from criminology that suggests violence and property crimes occur when there is a motivated offender, a suitable target, and a lack of capable guardianship.

Cost-effectiveness

A measure that compares the relative costs and outcomes of different courses of action or decisions.

Reliance on Technology

The dependence of individuals, organizations, or societies on technology for operations, communication, and efficiency.

Cost-benefit Analysis

Cost-benefit analysis is a process used to evaluate the total anticipated cost of a project compared to the benefits in order to determine the best course of action.